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Want to buy a NH Foreclosed property...

Hidden pitfalls c Monika McGillicuddy Often buyers will ask if they should consider buying a foreclosed property?

They want to know what the risks are?

If they can lose their deposit?

Can they have contingencies in the Purchase Agreement?

Would it be better to buy at the foreclosure auction?

Usually I answer by saying there are some fabulous buys out there in the foreclosed property arena BUT you need to have a stomach of steel and a ton of patience. Nothing happens fast when dealing with a bank owned property....unless of course if they want to foreclose on you, sorry I am being sarcastic here, but it sure does seems true. If you are a homeowner facing a potential foreclosure please read this post on Foreclosure? Don't Go It Alone.

There are many Pitfalls when buying a bank owned home and a huge amount of disconnect and yes incompetent people including real estate agents ,I'm not going to sugar coat it. There are some crappy real estate agents running around.

If you're thinking of buying a foreclosure property then this is an excellent article full of timely and important advice. It was written by Andrew Cadorette, Education Coordinator, New Hampshire Housing Finance Authority and is published on NH Realty Scoops with his permission. As Andy said the more people that read it the better it is.

Read more here >>> The Pitfalls of buying a bank owned home

Posted by Monika McGillicuddy~REALTOR®~ N.H. Real Estate Broker & Trainer on 01/02/2009 10:37 AM

Comments (11)

Foreclosures in the Home Buying Channel

the pitfalls of buying a bnak owned property, nh foreclosure and short sales, buying a foreclosure

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11 Comments on Want to buy a NH Foreclosed property...

JAN

It makes a lot of sense to work with a professional agent in any transaction but especially is a foreclosure or short sale.

Moni, stomach of steel is THE word for it! A smooth transaction can be nerve wrecking until you get to closing, but foreclosures make you reach for the nerve medicine!

Buying a foreclosure is not easy but if you have the right professionals on your team you will survive it. My foreclosures sell on time with very happy buyers and I am not the buyer agent I only list. Communication is key. A good agent regardless to how busy they are will always communicate. If you know what you are getting into ahead of time you will survive it and that eliminates surprises. I have guidlelines that I keep in my attachments that the buyer agent and buyer review. It outlines all the issues that I have come across and is a living document that changes as new issues need to be addressed. As an agent it is our job to get the buyers into the property at the best possible price in the shortest amount of time with the least amount of stress. Regardless of it being a foreclosure or a traditional sale we can accomplish this goal. Stay positive!!! Tiffany

Monika, nice answers to that question ! The bottom line is that the process is not for everyone and the consumer needs to assess the risks involved. Great links in your post !

Monika, "a stomach of steel and a ton of patience" is a good way of putting it when dealing with bank owned properties.

And run the other way if it is a Short Sale ......... LOL

Home buyers always want to know what are the risks of buying a foreclosured property. To avoid any pitfall,buyers and sellers should work with a licensed real estate professional.

Also Monika,how were you able to get those buttons on your post? Happy New Year to you. Have a great weekend. Great post.

JAN

Monika, thank you for the great links! I haven't sold any foreclosures here but our market got a late start downward so I anticipate more in 2009.

Buyers gravitate toward foreclosures because they think they are getting a good deal, and most of the time they are. But what some don't stop to consider is they can get just as good of a deal on a regular listing because sellers, at least in my area, are competing directly with foreclosures and have to price them accordingly.

JAN

There are some decent REO listings here but as with Elizabeth, there are some equally good deal being offered by everyday sellers, plus you don't have to wait forever or deal with REO drama.

JAN

It must be difficult to do the shortsales. We don't do many of those in my area.

JAN

Not always easy but a great deal for those who are prepared for it. I have had banks allow reopening of systems for inspections and have also had luck with them repairing things prior to the sale. Guess I'm fortunate.

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